These properties are already owned by the bank (or lending institution), so you would not need to take over payments or pay the commission. My experience has been that the original list price is just about the balance of the mortgage, but you don’t need to be concerned about that. The bank eventually wants to get defaulted real estate loans off their books at any price, so you can get some good deals. Ask the realtor to submit letters of intent to see if there is interest. You can write up the letter for him/her. If you haven’t done these before, I submit many of these for Steve Cook (SCook85). Either one of us would be happy to step you through it and I’m sure many others on the site would help also. I will be out of town until Wednesday, but can help then if you need it. Good
luck!
Just wanted to thank ‘whoever’ responded to my post on 4/20 regarding a REO I was going to see and had questions about the price I should offer.
Whoever answered suggested I get right over there because it was a new listing and it would probably go quick. As soon as I got my boots and flashlight I was out the door.
Submitted an offer 10k less than the asking price. Just a little clean-up, paint and carpet and it’s ready to rent!
Just wanted to thank someone for their advice. Sorry, I can’t remember the name (Tim sounds familiar, but I’m not sure).
Another investor (slumlord) was trying to sell his property and just happen to mention this property was vacant. Of course I pretended I wasn’t interested then raced to the courthouse to do my homework.
I’m not bragging, but I’ll give myself an ‘A’ on this one.
Bob,
Many are listed on the MLS. You can ask a RE agent to pull a list for you. In Maryland, I put in foreclosure, pre-forclosure and REO in the field called"current financing". Many agents specialize in these properties and understand that they will be bought by investors.
It really surprised me when the offer was accepted. They don’t know I would of paid the asking price. I could flip this baby tomorrow for 10k with no problem, but it’s a definite keeper. The best part is that my fix-up costs will be minimal compared to my other ‘jewels’.
I asked my friendly realtor for a listing of properties with keywords “foreclosure” and REO. I got about six hits.
Since all these properties are listed, the seller will have to pay the realtor commission. Are you seeing offers where the buyer will take over payments and pay the realtor commission?
What about the arrears on the mortgage? Does the seller disclose how much it would take to reinstate the mortgage if asked prior to making an offer?
These properties are already owned by the bank (or lending institution), so you would not need to take over payments or pay the commission. My experience has been that the original list price is just about the balance of the mortgage, but you don’t need to be concerned about that. The bank eventually wants to get defaulted real estate loans off their books at any price, so you can get some good deals. Ask the realtor to submit letters of intent to see if there is interest. You can write up the letter for him/her. If you haven’t done these before, I submit many of these for Steve Cook (SCook85). Either one of us would be happy to step you through it and I’m sure many others on the site would help also. I will be out of town until Wednesday, but can help then if you need it. Good
luck!